Real Estate
US Office Owners Get Dire Warning: Rebound Unlikely Before 2040
- Property values seen plunging 35% from pre-pandemic peak
- Major investors have already begun defaulting on buildings
Office usage is only about half what it was before the pandemic, according to badge-swipe data from Kastle Systems.
Photographer: Bing Guan/BloombergThis article is for subscribers only.
US office buildings are unlikely to regain their peak pre-pandemic values until at least 2040 as demand for desk space weakens, according to a forecast by Capital Economics.
Values are expected to plunge 35% from the peak by the end of 2025 and take an additional 15 years or more to recover as hybrid and remote work reshape real estate, the London-based research firm reported Thursday. It’s a trend that mirrors the collapse of shopping malls as e-commerce grew.